‘t Repeat Itself, It Rhymes- Skating Close to the Edge
After today’s CPI report, it’s pretty much a guarantee that the Fed will hike interest rates again in February. The last time I remember such a rapid and persistent hike in interest rates by the Federal Reserve was in 1987. According to Dr. Martin Feldstein and I quote from an academic journal article published shortly after the crash of 1987, “In January, long-term Treasury bonds had a yield of 7 1/4%, by April it was 8%, by August it was 8 1/4%, and by October it was more than 10%. We all know what happened shortly thereafter. On October 19th, … Read more